I am studying for my Economics midterm, and stuck on the sample midterm question. Here is the question.

practice_questions_mid X + X file:///C:/Users/jinjin/Downloads/practice_questions_midterm.pdf . .. of 1 | 0 + Fit to page [ Page view | A' Read aloud ~ Add notes Winter 2020 Sample midterm exam questions Consider an economy with two types of occupations, easy (E) and hard (H). Everyone must choose one of the two. Individual i has productivityes Yip and Yin, in the easy and hard occupations, respectively. Suppose the wage of individual i in the easy occupation is given by WiE = Yiz and her wage in the hard occupation is given by Will = Yin. Suppose each individual chooses the occupation in which she earns a higher wage. Further suppose that the productivity difference YiE - Yi# is distributed according to some cumulative distribution function F, where F(x) = Pr ( Y;E - YiH SI), with E (YE - YiH) = H. (1) What is the share of workers in the easy occupation? [5 points] (2) What is the mean wage of workers in the easy occupation? [5 points] (3) Write down a condition for negative selection in the easy occupation. Ex- plain. [5 points] Now suppose that each occupation requires effort at a cost cj, for j = E, H. with CH > CE. Suppose individual i's utility from working in occupation j is equal to Vij = Wij - Cj. Individuals seek to maximize their utility. (4) What is the share of workers in the easy occupation? [5 points] (5) What is the mean wage of workers in the easy occupation? [5 points] (6) Write down a condition for negative selection in the easy occupation. Ex- plain. [5 points] (7) Is there a compensating wage differential? Explain. [5 points] O Type here to search ENG 1:02 AM 2020-02-12